Resolute Holdings Management, Inc. reported its financial results for the first quarter of 2025, revealing a slight decline in net sales to $103.9 million, down from $104.0 million in the same period last year. The company's gross profit also decreased by 1% to $54.5 million, maintaining a gross margin of 53%. Operating expenses rose significantly by 27% to $28.9 million, primarily due to increased salaries and equity-based compensation as Resolute Holdings expanded its workforce. Consequently, income from operations fell by 21% to $25.6 million, leading to a net income of $22.6 million, compared to $26.4 million in the prior year.
The financial performance reflects a notable shift in the company's operational landscape following its spin-off from CompoSecure Holdings on February 28, 2025. This strategic move has positioned Resolute Holdings to manage CompoSecure's operations under a management agreement, which stipulates a quarterly management fee based on CompoSecure's adjusted EBITDA. The management fee for the quarter was recorded at $1.1 million, marking the beginning of a new revenue stream for Resolute Holdings.
In terms of operational metrics, the company reported a 4% decline in domestic sales, attributed to lower customer acquisition in CompoSecure's premium payment card business. However, international sales surged by 28%, indicating a growing market presence outside the U.S. The total customer base remains robust, with CompoSecure Holdings serving a diverse clientele that includes major banks and financial institutions across various regions.
Looking ahead, Resolute Holdings anticipates leveraging its management expertise to drive growth and operational efficiencies within CompoSecure Holdings. The company has also established a $5 million revolving credit facility to support its liquidity needs. As of March 31, 2025, Resolute Holdings had cash and cash equivalents totaling $71 million, with no outstanding balance on its credit facility, indicating a stable financial position to navigate future challenges and opportunities. The management remains optimistic about the potential for increased revenue through strategic initiatives and market expansion.
About Resolute Holdings Management, Inc.
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